The Marine Stewardship Council (MSC) Fishery Certification Chain of Custody Certification The best environmental choice in seafood

Presentation Outline Background MSC Standards Program structure and operation Fishery assessment and certification   Small scale/data deficient Making a difference Program status and trends Chain of Custody certification MSC commitments & products The best environmental choice in seafood

Context From 1950 to 2007, total fish production 14.3mmMT  120mmMT Global avg. seafood consumption in 1960=22lbs.; in 2005=36lbs. 200 million people depend directly on the fishing industry 25X more fishermen in small-scale than large-scale fisheries with equal production. Fish trade is US$83 billion year 2.9 billion people depend on seafood as primary or sole source of protein Seafood has an impact beyond just fish, it is a huge economic global force and a fundamental staple for ~1/3 of the world’s population The best environmental choice in seafood

Marine Stewardship Council (MSC) Independent, international charity established in 1997 by WWF & Unilever Aim to reverse the decline in global fish stocks Based on FAO code of conduct for responsible fishing; eco labelling Operating from 8 global offices & active in over 40 countries Primarily grant funded Manage two international standards – fisheries and traceability Partnership organization Governance structure The MSC was founded in 1997 by the WWF and Unilever and became fully independent in 1999. It has offices in: London, Seattle, Sydney, Scotland, Japan, Netherlands, Germany, South Africa The leading internationally recognised eco-label for environmentally well managed and sustainable fisheries The MSC standard is consistent with the ‘Guidelines for the Eco-labelling of Fish and Fishery Products from Marine Wild Capture Fisheries’ adopted by the FAO in 2005. Universally applicable- Fisheries are eligible regardless of size, scope, location The best environmental choice in seafood

How the Program Works Fisheries apply for certification on a voluntary basis Fisheries are assessed against the MSC Standard by 3rd party independent certifiers supported by a team of experts Members of the supply chain apply for “Chain of Custody” and audits are completed by 3rd party independent certifiers Fish from successfully certified fisheries can be marketed with MSC ecolabel once “chain of custody” is completed Voluntary participation – open to any and all Independent 3rd Party Certification Bodies (CBs) Fishery Unit of Certification – client based on fishery(ies), species, gear type(s), and fishers Fishery Certification – Optional confidential pre-assessment Full Assessment - transparent processes, built-in stakeholder consultation and objection procedures 5-year certification, with annual surveillance audits The best environmental choice in seafood

The MSC 3rd party process Defines Standard Criteria Standard setter Compliance Defines Standard Criteria Ecolabel Licensing OUTREACH Fishery FAO = 1) voluntary, 3rd party fishery assessment, utilizing scientific evidence and peer reviewed process. 2) transparent processes with built-in SH consultation and objections procedure. 3) three-pronged standard based on the sustainability of target species, ecosystems and management practices ISEAL: Code of good practice for setting social and environmental standards. Has to do with social justice and environmental sustainability. The mission of the ISEAL Alliance is to strengthen credible and accessible voluntary standards and to promote them as effective policy instruments and market mechanisms to bring about positive social and environmental change. **MSC is the only seafood certification system member. Certification Bodies Supply Chain Assess Certify & Audit Accredits The best environmental choice in seafood

MSC fishery standard If Fishery is Certified: Developed over 2-year process ’97-99 Based on FAO Code of Conduct for Responsible Fishing Broad stakeholder consultation Third-party independent, accredited certifiers Scope – wild capture fisheries Objective and scientifically verifiable; rigorous and comprehensive Open to fisheries of all sizes, scales, geography, & gear If Fishery is Certified: Chain of Custody certification Use of MSC ecolabel on products Annual Audits: ongoing monitoring Evaluate progress toward meeting any conditions of certification Evaluate if any changes in fishery performance, stock or ecosystem status, management system or new knowledge might create need for re- assessment The best environmental choice in seafood

MSC Fishery Certification Process Voluntary participation Initial analysis (confidential pre- assessment Transparent review of fishery (Full Assessment) with built-in stakeholder consultation and objection procedures 5-year certification, then re- assessment Annual surveillance audits by the certification body (on-going monitoring) Governance system for regular review If Fishery is Certified: Chain of Custody certification Use of MSC ecolabel on products Annual Audits: ongoing monitoring Evaluate progress toward meeting any conditions of certification Evaluate if any changes in fishery performance, stock or ecosystem status, management system or new knowledge might create need for re- assessment The best environmental choice in seafood

MSC pre-assessment If Fishery is Certified: Recommended Confidential – Results are not publicized Quick analysis of fishery to identify if they are a good candidate and highlight areas of concern Timeframe – 2-3 months Cost – time and expense of certifier, based on scale and complexity If Fishery is Certified: Chain of Custody certification Use of MSC ecolabel on products Annual Audits: ongoing monitoring Evaluate progress toward meeting any conditions of certification Evaluate if any changes in fishery performance, stock or ecosystem status, management system or new knowledge might create need for re- assessment The best environmental choice in seafood

MSC Full Assessment If Fishery is Certified: Process – public, peer-reviewed, published Timeframe – 12-18 months Cost – Time and expense of certifier, based on scale and complexity What is assessed (unit of cert) Audit – 3 principles with 31 indicators Scoring (<60-80-100) [qualitative process] Avg. 80 across each principle No less than 60 any indicator Conditions – areas of improvement If Fishery is Certified: Chain of Custody certification Use of MSC ecolabel on products Annual Audits: ongoing monitoring Evaluate progress toward meeting any conditions of certification Evaluate if any changes in fishery performance, stock or ecosystem status, management system or new knowledge might create need for re- assessment The best environmental choice in seafood

Full Assessment Process The best environmental choice in seafood

Roles & Responsibilities Fishery Client – legal entity entering contracts, provides data to assessment team, identify stakeholders, communicates to certifier MSC – standard setter, technical advice, policy development ASI – Accredits certifiers, monitors their compliance Certifier – Works with assessment team to assess fishery, issues certificates, manages audits Fishery Assessment Team – Appointed by certifier to evaluate fishery against MSC standard & scores fishery Stakeholders – Ensures concerns are communicated to assessment team & provides detailed arguments The best environmental choice in seafood

The MSC Standard: Three principles Sustainability of the stock Effective management Principle 1: Sustainable fish stocks The fishing activity must be at a level which is sustainable for the fish population. Any certified fishery must operate so that fishing can continue indefinitely and is not overexploiting the resources.  Principle 2: Minimizing environmental impact Fishing operations should be managed to maintain the structure, productivity, function and diversity of the ecosystem on which the fishery depends. Principle 3: Effective management The fishery must meet all local, national and international laws and must have a management system in place to respond to changing circumstances and maintain sustainability. Ecosystem impact The best environmental choice in seafood

The Three Principles PRINCIPLE 1 A fishery must be conducted in a manner that does not lead to over-fishing or depletion of the exploited populations and, for those populations that are depleted, the fishery must be conducted in a manner that demonstrably leads to their recovery PRINCIPLE 2 Fishing operations should allow for the maintenance of the structure, productivity, function and diversity of the ecosystem (including habitat and associated dependent and ecologically related species) on which the fishery depends PRINCIPLE 3 The fishery is subject to an effective management system that respects local, national and international laws and standards and incorporates institutional and operational frameworks that require use of the resource to be responsible and sustainable The best environmental choice in seafood

Standardized Assessment Tree - Fishery Assessment Methodology The best environmental choice in seafood

Passing the Fishery Standard Each performance indicator must score > 60 (minimum pass, automatic fail if not) Each Principle must achieve an average weighted score of > 80 across aggregated indicators (best practice) For any indicator scoring from > 60 to < 80, fishery client must agree to meet conditions to achieve specified outcomes over a defined period of time 20 40 60 80 100 20 40 60 80 100 CONDITIONS: 1). designed to raise the score to 80 – a) reduce uncertainty, b) improve processes, c) improve outcomes. 2). must be outcome based and time bound. 3). Client action plan required. 4). Consultation required with relevant parties. 5). Nearly all (if not all) certified fisheries have at least one condition. The best environmental choice in seafood

Post Fishery Certification Annual (at least) surveillance audits by the certification body Evaluate progress toward meeting any conditions of certification Evaluate if any changes in fishery performance, stock or ecosystem status, management system or new knowledge might create need for re-assessment Full re-assessment every 5 years The best environmental choice in seafood

Small-scale and/or data deficient fisheries MSC Policy Ensure equal access to program irrespective of size, scale, location, and intensity of program Risk-Based Framework (RBF) Developed for data deficient fisheries Pilots completed in South America, Africa, Asia, & Europe Risk Based Methodology now integrated into FAM Methodology based on ERAEF, CSIRO team The best environmental choice in seafood

Characteristics of RBF Alternative approach to MSC scoring designed to be used in conjunction with normal fishery assessment methodology Can be used for some indicators in P1 and P2 Is triggered when data for scoring is deficient (decision tree) No prerequisites for a fishery to meet to be eligible Built-in precaution of RBF methods creates an incentive to use FAM when data are available Approach is two-tiered: SICA and PSA Provide risk-based estimate of impact of fishery on ecological components in the PI. Approach: risk based indicators->risk score->MSC score The best environmental choice in seafood

RBF Method: Level 1 – SICA (Scale, Intensity, Consequence Analysis) Qualitative process to identify which activities lead to a significant impact on any species, habitat or ecosystem. Uses expert knowledge of stakeholders Uses sets of tables to score the impacts of different fishing activities on defined subcomponents Final scores based on the worst plausible case scenario identified by the stakeholder group 1. Scoping stage: compile info; hazard ID tables may be used to determine ‘risk landscape.’ 2. conduct SICA for each deficient PI: Stakeholder meetings (qualitative process). 3. Scoring for each data deficient PI via SICA scoring template. 4. For “species” PIs scoring ‘moderate’ (less than MSC 80) or greater risk with SICA, conduct PSA. 5. continue assessment steps in FAM The best environmental choice in seafood

RBF Method: Level 2 – PSA (Productivity-Susceptibility Analysis) Risk to an ecological unit (e.g. a bycatch fish species) due to fishing will depend on: Productivity: the natural dynamics of the unit (e.g., age at maturity), that determine the rate at which it recovers from impacts due to fishing Susceptibility: the level of “exposure” of the unit to the fishing activity (e.g., encounterability with the fishing gear) PSA examines attributes of each species that contribute to or reflect its productivity or susceptibility, in order to provide a relative measure of the risk to the scoring element from fishing activities. Productivity is the average of seven attributes; susceptibility is the product of four attributes. The best environmental choice in seafood

RBF schematic The best environmental choice in seafood

Certification: Making a Difference Market demand for independent certification is growing & driving change There is an ecological and business case Credible and robust certification and labelling programmes can compliment public policy measures and contribute to delivery of desired outcomes Clear role for consumers and the public in achieving these aims Business case: 1) most fisheries say the label has helped them retain existing markets and gain access to new ones, geographically or in terms of opportunities arising from new product category developments – 3rd party assessment provides an added assurance (improves visibility in seafood sector); 2) some smaller scale/artisanal fisheries report price premiums; 3) benefits beyond price premiums – govt’s accepting MSC cert as a proxy for newly minted export standards thereby saving fisheries $. Today the market for MSC cert sust seafood is ~>$1.5 billion; >2500 labeled products in 52 countries. The best environmental choice in seafood

Positive Improvements Environmental New Zealand hoki Stock rebuilt Reduced seabird mortality Seabed impacts South Africa hake Bird bycatch reduced to very low levels South Georgia Patagonian toothfish IUU fishing Traceability Economic Pacific cod (LL) New markets Price increase at wholesale level Pacific albacore Price increase at dock level NZ hoki: cert in 2001, re-cert in 2007. a) 2007 re-cert conditions required industry to implement a stock rebuilding plan as well as better record keeping. This encouraged better process documentation. Also, required to do an Env risk assessment with SH participation; b) another 07 condition required reducing mort or injuries to seabirds by managing fish waste discards (went from >8 birds per 100 tows in 01, to just over 1 in 07); c) MSC assessment and surv process identified interactions between trawling and seabed habitats as needing more mgmt consideration.. This helped to contribute to the formation of benthic protection areas. South African hake: cert in 2004. as a condition on the fishery, seabird mort had to be investigated within 1 year (up until this point they did not know how serious a problem they had). The work = found to be significant (on avg 18,000 birds annually), and condition said that mitigation would be required. Introduced tori lines and restrictions on fish processing while nets are being set. As a result of all this, bird morts were reduced to just 200 per year. S. Georgia Toothfish: cert 2004, re-cert 09. a) MSC cert has allowed $ to be directed back into the fishery for research, surveillance and control – avoiding environmental disaster. Full time patrol ship, reduce/monitor bird bycatch, etc; b) traceability requirement as part of CoC was the biggest gain: assurance that every product with the logo is fully traceable – fish processed on ship go into bar coded boxes and each are individually weighed. From this the managers know exactly how much is harvested per quotas. Economic BSAI cod: cert 2006. a) Cert resulted in access to emerging and large markets in UK and Europe. New customers first in the UK and now growing elsewhere in Europe; b) price premium estimates of as much as 2 or 3% when demand is strong but the biggest benefit has been access to new markets. AAFA albacore: cert in 2007. a) new markets in Europe, with client building these during assessment and them waiting to buy once certified; b) stable prices and socio-economic benefits – because of new European markets the fishermen were able to set stable prices for the entire season versus being at the mercy of dockside price setting (AAFA set the price). Price increase per ton (~$500) meant the fishermen could invest in their vessels and provided a future. The best environmental choice in seafood

Positive Improvements Social Baja CA red rock lobster Political visibility of fishing community increased Policy South African hake Bird by-catch measures adopted throughout fleet EUR herring More precautionary management policies Continue to meet MSC standard Social: Example of wider social benefits through community empowerment. Engagement in MSC put 10 villages supported by this small, community based fishery on the federal government’s map. Resulted in increased govt attention and better provision of essential services - $20 million grant for electricity and govt help with infrastructure, access roads and drinking water. Policy S. African hake (mentioned earlier): Tori lines became mandatory and were put in place because of MSC – govt will then enshrine this into policy now (big benefit). Fishery managers also recognize that long-term collaboration opportunities between industry and regulators have been fostered as a result of this process. European herring: most of the major fisheries are either certified or under FA. This critical mass has changed the mood of EU fishing negotiations. Quotas and other business are now more precautionary, with an eye to continue to meet MSC standard. The best environmental choice in seafood

Fisheries In MSC Program 40-50 Fisheries in Pre -Assessment 119 Fisheries in Full Assessment 92 MSC Certified Fisheries The best environmental choice in seafood 26

The best environmental choice in seafood

MSC-certified Supply 12% of world’s edible wild capture fisheries are now engaged. Over 5,000,000 Mt of seafood in total (>3 m MT in assessment). Species by category: 42% of global salmon catch 40% of global prime whitefish catch (cod, pollock, hake, haddock, & saithe) 85% of global cold water shrimp catch (Canada & Oregon) 18% of global spiny lobster catch Go back to the notes from the beginning. The benefits of sustainable fishing…and more! The best environmental choice in seafood

California Fisheries in MSC program Albacore tuna Pacific hake Others have completed pre-assessment Sussex England approach to network of fisheries Learning from other west coast fisheries Considerations Sussex: UK Inshore Fisheries Sustainability Project. Pilot program (MSC took part in project) identified strategies for improving mgmt and the use of RBF for some fisheries = A PRE-ASSESSMENT OF 26 FISHERIES AGAINST MSC. Pilot results: a) assessment of each species/gear combo has clearly distinguished fisheries that would meet MSC with minimal work and those requiring more work; b) clearly identified systemic weaknesses in current knowledge or practice which, if remedied, will impact positively on mgmt of lots of fisheries. As part of (b), inconsistencies in roles played by many entities, and policy makers; lack of adaptive managment; mgmt credibility, etc More pilot results: biggest impediment to wide scale compliance = absence of stock assessment and harvest strategies for locally exploited species. The best environmental choice in seafood

Traceability MSC – Chain of Custody MSC products can be traced back to MSC certified source fishery through our Chain of Custody certification. Chain of Custody is a requirement for any company that wants to sell and promote products as MSC certified. Primary & Secondary Processors Distributors and Importers Retailers (Fresh Department) 3rd Party Independent audit by Certifying Bodies. Audit to make sure that companies have systems in place to keep MSC separate from non-certified fish. The best environmental choice in seafood 30

MSC Chain of Custody Certification Product Traceability MSC Chain of Custody Certification Certified Fishery Certified Primary Processor Certified Secondary Processor Certified Wholesaler/Distributor The best environmental choice in seafood 15

MSC Labeled products >335 MSC labeled products in US Nearly 3,500 MSC labeled products world-wide The best environmental choice in seafood

Commitments from USA Retail World’s largest retailer, USA committed to sourcing 100% MSC certified seafood by 2011. (wild - fresh & frozen) now offering 30 seafood private label products with the MSC eco-label in more than 1,600 Target stores across the U.S. promotes MSC certified private label product line in +1000 stores across country. world’s largest organic food retailer, committed to sourcing and promoting MSC certified seafood in all stores. Strong and healthy relationships with small and local retailers Most-all of mainstream retailers have sustainability initiatives in place and a lot of them have MSC committments Small scale: the standard in Europe, in Canada, and soon to be the US. We know from past experience that EU is 5 yrs ahead, Canada is 2 years and from our conversations we know that sustainability is huge for their business. It’s coming to the US. The best environmental choice in seafood

Global Retail Commitments Walmart, world’s largest retailer, committed to sourcing 100% MSC certified seafood for wild, fresh & frozen, by 2011. Target now offering 15 seafood private label products with the MSC eco-label in more than 1,600 Target stores. Whole Foods, world’s largest organic food retailer, committed to sourcing and promoting MSC certified seafood in all stores. Loblaws, Canada’s largest retailer, committed to sourcing 100% MSC certified seafood for all departments by 2013. Mark’s & Spencer sets 100% MSC certified targets by 2012. Sainsburys to double number of MSC products in 2008. Addition of MSC to procurement policy, major consumer promotion in 2010. AEON, Japan’s largest retailer, launched 14 MSC products last December. The Netherlands: National retail (4500 stores) to only buy and sell 100% MSC certified seafood by 2011. Metro to have certified all their fresh fish counters for MSC Chain of Custody. Carrefour launches major MSC promotion in all global stores. Go back to the notes from the beginning. The benefits of sustainable fishing…and more! The best environmental choice in seafood

Foodservice Reach US Foodservice - The 2nd largest food service distributor in USA, launches MSC product line. Sodexo - World’s leading contract caterer now committed to sourcing MSC certified for all wild seafood purchases. Busch Gardens - Committed to only sourcing MSC certified seafood for all 10 theme parks. U. of Notre Dame - Will begin using MSC as the basis for their new sustainable seafood procurement program. US ‘Top 25’ seafood processors – Most are producing MSC foodservice products. The best environmental choice in seafood 35

MSC Certified Restaurants The best environmental choice in seafood MSC Certified Restaurants

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